April 2, 2026 8:34 PM

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Government introduces measures to address rising costs in highway projects

The government has announced a set of measures to mitigate the impact of the global scenario and the consequent rise in prices of fuel, construction materials, and related logistics on National Highway Projects. These measures are aimed at providing relief to contractors and concessionaires while ensuring uninterrupted construction and maintenance of National Highway projects across the country. The measures will be applicable for a period of three months, from 1st April till 30th June 2026, or until further review based on the global economic situation.
 
The Ministry of Road Transport and Highways informed that as part of the measures, provisions for EPC projects and HAM projects have been relaxed to enable monthly payments to contractors and concessionaires for work executed in compliance with prescribed quality standards and specifications. Further, the mechanism for price adjustment under EPC contracts has been modified to reflect prevailing market conditions. The Ministry said that the initiative reflects the Government’s proactive approach to addressing sectoral challenges and its commitment to maintaining momentum in infrastructure development by ensuring financial stability and operational continuity in National Highway projects.